'Responsible' lending laws to be axed

5 bought all sittng on the one title.

 

And people think the property market isn't a bubble.

The RBA has all but admitted the housing market is a bubble.

Tread carefully.

 

Interesting update to all this. The bill was introduced to parliament today.

I've had quite a few people recently ask me if things are getting easier as a result of this. It has to get though both houses first, then actually implemented. Don't expect any changes for qutie some time. Even then the changes will be small and slow. Just because some oversight disappears, doesn't mean lenders will change their policies overnight.

Realistically though, I'm not convinced it's going to make it through the senate. This could all be a pipe dream.

 

IDK. I reckon there could be a lenders race to the bottom. A re-jockeying to push credit a bit easier. Maybe not the absolute bottom but somewhere lower than the present. And it could help property investors since its a secured loan and has less risks than say a unsecured loan.

https://www.aph.gov.au/Parliamentar...slation/Bills_Search_Results/Result?bId=r6656

 

Another race to the bottom just started. We will know the (inevitable) outcome in ten years or so.

 

Don't see things getting easier. Debt to Income (DTI) ratio is the spanner in the works. People with a few properties and a bit of existing lending won't find it any easier. And those who are starting out need to have access to plenty of equity so they can get around the DTI issue as they build the portfolio.

 

APRA and DTI caps at 6 times income and ASIC to follow the same rules with Non ADI's.

Some loosening around living expense verification but the catch all DTI will mean not much difference from current situation for most investors. In fact may get harder if non banks have to follow the DTI rules which is what is proposed.

 

I've had numerous applications approved with DTI > 6

 

So have I. I believe this is what we will see next year if APRA is given the keys.. smaller lenders have mostly already implement the 6 times rule to some degree. I believe big lenders will be next if property market remains strong..

 

As in, make a hard limit of 6 maximum DTI across the board?

 

Will this dude find it difficult to buy more properties?
Investor with 200-plus properties bags six more homes during COVID-19 and wants even more - realestate.com.au

 

Depends what his DTI is, but probably not.

 

R

He seems to have picked it pretty well Kudos. I don't agree with his logic entirely but still credit where credit is due

 

Yep or only 15% of new loans over 6 etc etc . We know what happens when most lenders have one policy and there is an outlier they all end up having to fall in line.

 

Last year no vaccines no problems - not now even fully vaccinated

From today SMH - 15,000 rich foreigners given visas to Australia during the pandemic


One of a good indicator for Sydney property seems demand for normal suburbs are still high. This one sold yesterday and double the price from last sold two years ago. Not sure if many investors or OO could have predicted that https://www.realestate.com.au/sold/property-house-nsw-eastwood-136792214